Republic of the Philippines

Republic of the Philippines

National Capital Judicial Region

METROPOLITAN TRIAL COURT

Branch 23, Manila

RIZAL TEACHERS KILUSANG BAYAN

FOR CREDIT, INC. represented by

Mr. Carlito A. Caneta

Plaintiffs,

-versus-

Civil Case No. - 180135CV

FOR: Sum of Money

MILAGROS R. DELA CRUZ, ET AL.

Defendants.

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A N S W E R

DEFENDANTS, assisted by the undersigned Public Attorney, unto this Honorable Court respectfully alleged to wit:

1. We vehemently deny the allegations in Paragraph 1 of the complaint with respect to the averment that plaintiff is duly organized and existing under Philippine laws. Plaintiff is not registered with the Cooperative Development Authority. Hence, is not a juridical person and has no personality or capacity to sue or be sued as a juridical person.

2. We specifically deny the authority/personality of Mr. Carlito Caneta to file the instant case for lack of knowledge sufficient to prove a belief as to the veracity of the allegation.

3. We deny the allegations in Paragraph 3 with respect to the 39% interest per annum. The truth is that when we signed the promissory note (Annex B of the complaint), there was no figure of 39% per annum or 3.25% per month. The said figures were just inserted by the plaintiff after we have signed said documents with an obvious intent to defraud us. Thus, we deny the authority and due execution of the promissory notes marked as Annexes B and C of the complaint.

4. We specifically deny the allegations in Paragraph 5 of the complaint that we are in default in the payment of said loan because the payment thereof was made via payroll deductions as agreed upon. Plaintiff made arrangements with the Department of Education and Culture with respect to the collection of payment of the loan of public school teachers.

5. We specifically deny the allegations in Paragraphs 7 of the complaint that we received any demand letter from the plaintiff with respect to the payment of the loan for the simple reason that the payment thereof was supposed to be made thru payroll deduction. It was just unfortunate that Department of Education, Culture and Sports Memorandum dated July 4, 2001 was issued advising the Finance and Management Services of said Department to stop deductions made from the teachers salaries in favor of herein plaintiff.

6. We deny the allegations in paragraph 8 for lack of knowledge and information to the truth of the veracity thereof.

7. Due to the malicious and impounded filing of this suit, we have suffered serious anxieties, public humiliation, and embarrassment as schoolteachers and countless sleepless nights.

PRAYER

WHEREFORE, premises considered, it is most respectfully prayed that after hearing, an Order will be issued by this Honorable Court directing the dismissal of the instant case and ordering the plaintiff to pay each defendants moral damages in the amount of P 50,000.00.

Other relief and remedies as may be just under the premises are likewise prayed for.

Manila, Philippines,

September 14, 2005

Department of Justice

PUBLIC ATTORNEY'S OFFICE

Manila District

4/F W. Godino Bldg.

350 Arroceros Street,

Ermita, Manila

By:

DONALD H. MACASAET

Public Attorney II

VERIFICATION

WE, Milagros Dela Cruz, Clarita M. Loderico, Lorna B. Beato, Angela N. Hasib, Luisa M. Erispe, Leonides S. Aranzaso, Susie C. Remetio and Rosita R. Sacdalan, all of legal age, after having sworn in accordance with law do hereby depose and state:

1. That we are the defendants in the above entitled case.

2. That we have caused the preparation of the foregoing Answer

3. That the contents thereof are true and correct of our own knowledge.

IN WITNESS WHEREOF, we have hereunto set our hand on this __ day of ______________ at the City of _________________, Philippines.

Milagros Dela Cruz

Clarita LodericoLorna Beato

Angela HasibLuisa EspireLeonides Aranzaso

Susie RemetioRosita Sacdalan

SUBSCRIBED AND SWORN to before me on this __ day of ____________ 2005 at _________________________, Philippines.

Doc No.

Page No.

Book No.

Series of 2005

Copy furnished:

ATTY. ROMEO V. FULLANTE

P.C. Nolasco & Associates

Rm. 548 Wellington Bldg.

Plaza Lorenzo Ruiz, Binondo, ManilaEXPLANATION

Copy of the herein pleading was served to plaintiffs counsel by registered mail due to lack of messengerial services.

DONALD H. MACASAET